Key facts
- Microsoft and Chevron will develop a 2.67-gigawatt natural gas power plant in West Texas.
- The plant will supply power to Microsoft's AI and cloud data centers.
- A 20-year power purchase agreement is in place for the dedicated electricity.
- GE Vernova and Solar Turbines will provide the power generation equipment.
- The project, dubbed Project Kilby, is expected to be one of the largest of its kind in the U.S.
Microsoft and Chevron announced plans on Monday to construct a 2.67-gigawatt natural gas power plant in West Texas, intended to exclusively power Microsoft's expanding AI and cloud data centers. This significant development, known as Project Kilby, involves a 20-year power purchase agreement where Microsoft will buy electricity generated primarily by two large GE Vernova turbines, with additional power from a Caterpillar subsidiary, Solar Turbines.
Chevron highlighted the project as potentially one of the largest co-located natural gas power and data center developments in the United States. While Microsoft has previously indicated such a move, it presents a challenge to the company's stated goal of eliminating carbon emissions by 2030. According to the Environmental Integrity Project, the facility could release over 13 million tons of carbon dioxide annually, alongside substantial amounts of criteria and hazardous air pollutants.